A decision by neighbouring Bhutan to introduce performance-based pay for its Public Servants has revived debate over a similar policy in India.
Performance-based pay for the Indian Public Service was first mooted in November 2015 when the Pay Commission recommended introducing an almost corporate-like pay structure that would be determined on the basis of one’s performance and efficiency.
The Commission recommended that pay would be based on Results Framework Documents and reformed Annual Performance Appraisal Reports as well as other broad Government guidelines.
However, it met resistance from some Indian Administrative Service (IAS) officers and never saw the light of day.
According to Bhutan’s Bill, performance-based pay would be linked to “national, organisational and individual performance”.
The Bhutanese Government has said the Bill was a way to “drive meritocracy”.
However, it is unlikely there will be similar move in India anytime soon.
An officer serving in the Department of Personnel told journalists there were no talks to introduce performance-based pay into India at the moment.
Serving and retired Public Servants are divided over the policy.
While some believe such a performance-based policy would ensure efficiency, others say it would be difficult to base pay structure on performance.
A senior officer of the Indian Revenue Service believed its introduction would have ensured efficiency at various levels.
However, retired IAS officer, Arvind Mehta said performance-based pay was a good idea in theory, but difficult in implementation for practical purposes.
“The ways to evaluate one performance generally include promotions and posting rather than working on a pay structure,” Mr Mehta, who served as Secretary to the Finance Commission, said.
“The incentive scheme for the Civil Service officers in our country works like that.”
New Delhi, 24 November 2022
